Question 1

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Accepted Answer

A) True 
 B)False  True

Question 2

Instruction 3-1
  
-Refer to Instruction 3-1.Beginning with the first pay of the year,Carson will make $2,700 each week.In which numbered pay of the year will Carson hit the OASDI taxable limit?

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Beginning...

Question 3

Under SECA,all of an individual's self-employment income is counted in determining the HI tax.

Accepted Answer

A) True 
 B)False  True

Question 4

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

Accepted Answer

A) True 
 B)False

Question 5

Form 944 (annual form)can be used by all new employers instead of Form 941.

Accepted Answer

A) True 
 B)False

Question 6

Instruction 3-1
  
-Refer to Instruction 3-1.Ralston is the sole proprietor of Cut & Curl.During the year,his net earnings were $79,700.What are his self-employment taxes (OASDI and HI)on these earnings?

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Ralston...

Question 7

On Schedule B of Form 941,the employer does not show the date of each tax deposit during the quarter.

Accepted Answer

A) True 
 B)False

Question 8

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Accepted Answer

A)  No deposit is required. 
B)  The undeposited taxes should be carried over to the end of November. 
C)  The taxes must be deposited on or before November 15. 
D)  The taxes must be deposited on or before the next banking day. 
E)  None of the above. 
A)  No deposit is required. 
B)  The undeposited taxes should be carried over to the end of November. 
C)  The taxes must be deposited on or before November 15. 
D)  The taxes must be deposited on or before the next banking day. 
E)  None of the above.

Question 10

Instruction 3-1
  
-Refer to Instruction 3-1.Jax Company's (a monthly depositor)tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax)for July was $1,210.No deposit was made by the company until August 24,20--.Determine:
a)The date by which the deposit should have been made
b)The penalty for failure to make timely deposit
c)The penalty for failure to fully pay tax when due
d)The interest on taxes due and unpaid (assume a 3% interest rate)

Accepted Answer

a)
August

Question 11

Instruction 3-1
  
-Refer to Instruction 3-1.Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $51,300.In determining her taxable self-employment income for the OASDI tax,how much of her net self-employment earnings must Fess count?

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.Fess...

Question 12

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Accepted Answer

A)  The employee's taxes are collected by the employer and paid to the IRS along with the employer's taxes. 
B)  The employee's taxes are deducted from the employee's wages at the time of payment. 
C)  The employee's liability for the FICA taxes continues even after the employer has withheld them. 
D)  The amount of tax to be withheld is computed by multiplying the employee's taxable wages by the current tax rate. 
E)  The employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer. 
A)  The employee's taxes are collected by the employer and paid to the IRS along with the employer's taxes. 
B)  The employee's taxes are deducted from the employee's wages at the time of payment. 
C)  The employee's liability for the FICA taxes continues even after the employer has withheld them. 
D)  The amount of tax to be withheld is computed by multiplying the employee's taxable wages by the current tax rate. 
E)  The employee is entitled to a refund for overpayment of FICA taxes resulting from having worked for more than one employer.

Question 13

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

Accepted Answer

A) True 
 B)False

Question 14

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

Accepted Answer

A) True 
 B)False

Question 15

The FICA tax rates for the self-employed are:

Accepted Answer

A)  6.2% (OASDI)and 1.45% (HI). 
B)  12.4% (OASDI)and 1.45% (HI). 
C)  6.2% (OASDI)and 2.9% (HI). 
D)  10.0% (OASDI)and 1.0% (HI). 
E)  none of the above. 
A)  6.2% (OASDI)and 1.45% (HI). 
B)  12.4% (OASDI)and 1.45% (HI). 
C)  6.2% (OASDI)and 2.9% (HI). 
D)  10.0% (OASDI)and 1.0% (HI). 
E)  none of the above.

Question 16

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

Accepted Answer

A) True 
 B)False

Question 17

If the accumulated employment taxes during a quarter are less than $2,500,no deposits are required.

Accepted Answer

A) True 
 B)False

Question 18

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

Accepted Answer

A) True 
 B)False

Question 19

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Accepted Answer

A) True 
 B)False

Question 20

Instruction 3-1
  
-Refer to Instruction 3-1.In this pay,Moss Company deducted OASDI taxes of $5,276.24 and HI taxes of $1,233.95 from the $85,100.90 of taxable wages paid.What is Moss Company's portion of the social security taxes for:
a)OASDI
b)HI

Accepted Answer

The answer of Instruction 3-1
  
-Refer to Instruction 3-1.In...

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Instruction 3-1 -Refer to Instruction 3-1.Beginning with the first pay of the year,Carson will make $2,700 each week.In which numbered pay of the year will Carson hit the OASDI taxable limit?

Under SECA,all of an individual's self-employment income is counted in determining the HI tax.

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

Form 944 (annual form)can be used by all new employers instead of Form 941.

Instruction 3-1 -Refer to Instruction 3-1.Ralston is the sole proprietor of Cut & Curl.During the year,his net earnings were $79,700.What are his self-employment taxes (OASDI and HI)on these earnings?

On Schedule B of Form 941,the employer does not show the date of each tax deposit during the quarter.

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Instruction 3-1 -Refer to Instruction 3-1.Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $51,300.In determining her taxable self-employment income for the OASDI tax,how much of her net self-employment earnings must Fess count?

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

The FICA tax rates for the self-employed are:

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

If the accumulated employment taxes during a quarter are less than $2,500,no deposits are required.

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Instruction 3-1 -Refer to Instruction 3-1.In this pay,Moss Company deducted OASDI taxes of $5,276.24 and HI taxes of $1,233.95 from the $85,100.90 of taxable wages paid.What is Moss Company's portion of the social security taxes for: a)OASDI b)HI

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters

Exam 3: Social Security Taxes

Monthly depositors are required to deposit their taxes by the 15th day of the following month.

Instruction 3-1 -Refer to Instruction 3-1.Beginning with the first pay of the year,Carson will make $2,700 each week.In which numbered pay of the year will Carson hit the OASDI taxable limit?

Under SECA,all of an individual's self-employment income is counted in determining the HI tax.

The Federal Insurance Contributions Act levies a tax upon the gross earnings of self-employed persons.

Form 944 (annual form)can be used by all new employers instead of Form 941.

Instruction 3-1 -Refer to Instruction 3-1.Ralston is the sole proprietor of Cut & Curl.During the year,his net earnings were $79,700.What are his self-employment taxes (OASDI and HI)on these earnings?

On Schedule B of Form 941,the employer does not show the date of each tax deposit during the quarter.

Exempt educational assistance includes payments for tools that employees keep after they complete a course of instruction.

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

Instruction 3-1 -Refer to Instruction 3-1.Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $51,300.In determining her taxable self-employment income for the OASDI tax,how much of her net self-employment earnings must Fess count?

Which of the following statements does not describe an employee's FICA taxes and withholdings?

Employer payments made directly to employees in lieu of health insurance coverage are taxable wages.

An employer's social security and withheld income taxes for the quarter are less than $2,500.The employer must deposit the taxes at its bank at the time of filing the fourth quarter Form 941.

The FICA tax rates for the self-employed are:

The requirements for depositing FICA taxes and income taxes withheld from nonagricultural employees' wages vary according to the amount of such taxes reported during a "lookback period."

If the accumulated employment taxes during a quarter are less than $2,500,no deposits are required.

Self-employed persons include their self-employment taxes in their quarterly payment of estimated federal income taxes.

Form 941 is due on or before the 15th day of the month following the close of the calendar quarter for which the return is made.

Instruction 3-1 -Refer to Instruction 3-1.In this pay,Moss Company deducted OASDI taxes of $5,276.24 and HI taxes of $1,233.95 from the $85,100.90 of taxable wages paid.What is Moss Company's portion of the social security taxes for: a)OASDI b)HI

The Need for Payroll and Personal Records

Computing Wages and Salaries

Income Tax Withholding

Unemployment Compensation Taxes

Analyzing and Journalizing Payroll

Filters